Answer:
Direct labor cost = $51450
Direct labor hours 4677.27
Direct labor per hour 1.46
Explanation:
Sharp Company
Given Data
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 3 feet $ 11 per foot $ 33
Direct labor ? hours ? per hour ?
Materials quantity variance $ 4,400 U
Labor spending variance $ 450 F
Labor efficiency variance $ 2,000 U
1.a. The Actual Cost per foot of materials for March=$111,300/10000=$ 11.13
Materials quantity variance $ 4,400 U =(Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)
$ 4,400 U = 11* AQ- 11*3 feet*3200
$ 4400= 11* AQ- 105600
$ 4400+ $105600= 11* AQ
AQ =110000/11= 10,000
b. Materials price variance = Actual Price *Actual Quantity - Standard Price * Actual Quantity
Materials price variance =Actual Price *Actual Quantity - Standard Price * Actual Quantity
Materials price variance =$ 11.13* 10000- 11*10000
Materials price variance=$111,300-110000=1300 Unfavorable
Spending variance= Purchase Price Variance + Materials quantity variance
Spending variance= 1300 Unfavorable + $ 4,400 U= 5700 Unfavorable
2. Labor spending variance $ 450 F =Labor efficiency variance $ 2,000 U+Direct Labor rate per hour
a. Direct Labor rate per hour =Labor efficiency variance + Labor spending variance =$ 2,000 +$ 450 =$ 2450 Unfav
Direct Labor rate per hour =(actual hours* actual rate)- (actual hours * standard rate)
Direct labor time variance= (actual hours* standard rate)- (standard hours * standard rate)
$ 2450 Unfav= 4900*11- standard hours * 11
standard hours *11= 53900- 2450= 51450
b. Standard Hours= 51450/11= 4677.27
c. Standard Hours per unit of product= 4677.27/3200= 1.46
Actual Hours= 4900/3200= 1.53125
